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Problem 3. Use the following MACRS Table and the following information: Revenue of the year is $ 150,000. All other business expenses $90,000 can be

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Problem 3. Use the following MACRS Table and the following information: Revenue of the year is $ 150,000. All other business expenses $90,000 can be written off the same year. Business Debt interest paid is $10,000. The ordinary income tax marginal tax rate is 35% and capital gain tax rate is 20%. In addition, a 7-year equipment has been depreciated for 4 years (This year is the 4th year of the depreciation) and is sold for $18,000 at the end of this year. This equipment was purchased at an original cost of $50,000. Calculate the After Tax Cash Flow including cash from the business operation and after tax cash received from selling the machine. Table A-1. 3-6-7-10-, 16-andi 20-Year Property Healt-YEF Donvention Destinate te reooververe VORE -yor 7-year 10-ye 15-yor 0.009 1909 10.0096 65.00 32.00 8.40 1.00 .60 19.20 17-19 14.40 3.65 741 1. 12.00 11.69 7.YO PR 3.00 . . 2.0 . . 0. . . 6.00 ene . 3.0 6.DO 20-VOR . 70096 7.29 0077 0.17 5.713 . . 1.0 - ONOODO009 PEEPS D. DO 3.D 5.00 4. .. . 40 . DO 40 4.40 5.40 After Tax Cash Flow =

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